In a case of first impression, the U.S. Court of Appeals for the Third Circuit has said reverse-payment settlements in pharmaceutical patent cases are prima facie evidence of unreasonable restraint of trade.
The court has rejected the scope-of-the-patent test used by several other circuits to determine whether a reverse-payment settlement violates antitrust laws and instead has adopted a rule-of-reason analysis to determine if the settlements warrant antitrust review.
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